Wolverine Worldwide in Q1 profit rise
- Q1 profit grows 7.8% to $40.1m
- Revenue edges up 0.6% to $631.4m
- Gross margin improves 60 basis points
US clothing and footwear business Wolverine Worldwide has booked a better than expected performance during the first quarter, with both net profit and sales rising.
Net income reached US$40.1m for the three months to 28 March, compared to $37.2m in the same period last year.
Revenue edged up 0.6% to $631.4m from $627.6m in the prior year. The Heritage Group saw mid single-digit growth, while the Lifestyle Group booked a low single-digit increase. However, the Performance Group posted a low single-digit drop in revenue during the period.
The US and Latin America booked low single-digit growth, while Asia Pacific recorded a strong double-digit rise.
Meanwhile, gross margin improved 60 basis points to 41.4%, driven primarily by price increases and lower close out sales.
"Our first-quarter results reflect the continued strength of our brand portfolio and a global business model that is built on 15 brands, targeting multiple consumer groups, distribution channels and geographies," said chairman, president and CEO Blake Krueger.
"We believe the strategic investments we are making in our brands - including investments in consumer-demand creation and omnichannel initiatives - position us to capitalise on the many opportunities we have identified to accelerate our growth around the world in 2016 and beyond."
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